Jan052018

The Daily Republic

Julie Hoffmann can't find enough workers for her business.

Hoffmann, the owner of East River Nursery in Huron, looked for solutions to her growing workforce problem from U.S. Rep Kristi Noem on Thursday as she stopped by Huron for her Tax Cuts and Jobs Tour. The Republican's visit was part of a statewide tour to discuss the impact a tax overhaul will have on businesses, paychecks and families.

"I thought why not come in and see what she has to say about things," Hoffmann said following Noem's talk at Double D Western LLC in Huron. "And the clarification on the tax is good, and knowing all of that. I haven't had time to really look into it and see what's going on."

Noem, who said many believe the recent tax reform bill ignores "everyday people," decided to take to the road and answer questions herself. In her Huron stop, the focus was small business, drawing in at least 10 local business owners.

"We have 83,000 jobs in South Dakota directly tied with small businesses ..." Noem said to the crowd. " ... When you give a tax cut to small businesses, that's when you automatically see that economic growth, so I was thrilled with where we ended up."

Highlights to the tax reform bill, which was signed into law just before Christmas, offers a first-ever 20 percent tax deduction that applies to the first $315,000 of joint income earned by small businesses, Noem said. This is the "biggest tax cut that small businesses" have gotten, she added.

Noem continued to say the bill offers a 100 percent business expensing option that will allow businesses to write off purchases in order to invest and continue expanding.

"We focused on growth so if it was actually going to cause businesses to expand, relocate in the country then that was something we wanted to do," said Noem....

Business owners peppered Noem with questions beyond the tax reform bill, including health care — which Noem said was the No. 1 issue she hears about now that the tax bill has passed.

With continuous complaints about rising health care rates, Noem said the tax bill will hopefully keep "a little bit more money" in South Dakotans' pockets, including Hoffmann's.

"It looks like there's going to be some relief for us," Hoffmann said. "Maybe we can afford a better insurance package for our employees."

The next hot button issue was sales tax, and the hit businesses have taken with online shopping. Several small business owners raised concerns with Noem, and they worry about keeping business alive with growing online purchases.

But Noem assured the crowd she has "the bill to fix it." Her bill, Noem said, would create a federal clearinghouse that would collect sales tax. And if a South Dakotan shops in California, the tax would be collected at South Dakota's rate.

And she claims to have President Donald Trump's support, who she said has committed to her that the bill will get passed.

"That would fix a lot of what's wrong in South Dakota," Noem said, talking about the hurdles she has yet to pass with the bill. "These people are paying property taxes, they're hiring folks, they're giving them jobs, and we're undercutting them every time we let somebody buy something online."